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Fisher & Paykel Healthcare (NZSE:FPH) ROC (Joel Greenblatt) % : 25.30% (As of Sep. 2024)


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What is Fisher & Paykel Healthcare ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Fisher & Paykel Healthcare's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 25.30%.

The historical rank and industry rank for Fisher & Paykel Healthcare's ROC (Joel Greenblatt) % or its related term are showing as below:

NZSE:FPH' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 16.18   Med: 44.55   Max: 78.69
Current: 18.38

During the past 13 years, Fisher & Paykel Healthcare's highest ROC (Joel Greenblatt) % was 78.69%. The lowest was 16.18%. And the median was 44.55%.

NZSE:FPH's ROC (Joel Greenblatt) % is ranked better than
70.94% of 850 companies
in the Medical Devices & Instruments industry
Industry Median: -0.525 vs NZSE:FPH: 18.38

Fisher & Paykel Healthcare's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -19.60% per year.


Fisher & Paykel Healthcare ROC (Joel Greenblatt) % Historical Data

The historical data trend for Fisher & Paykel Healthcare's ROC (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Fisher & Paykel Healthcare ROC (Joel Greenblatt) % Chart

Fisher & Paykel Healthcare Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 47.77 78.69 45.45 24.42 16.18

Fisher & Paykel Healthcare Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.67 30.53 18.02 12.11 25.30

Competitive Comparison of Fisher & Paykel Healthcare's ROC (Joel Greenblatt) %

For the Medical Instruments & Supplies subindustry, Fisher & Paykel Healthcare's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fisher & Paykel Healthcare's ROC (Joel Greenblatt) % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Fisher & Paykel Healthcare's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Fisher & Paykel Healthcare's ROC (Joel Greenblatt) % falls into.



Fisher & Paykel Healthcare ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(223 + 320.4 + 45.3) - (219.9 + 18.5 + 50.4)
=299.9

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(253.6 + 332.7 + 65) - (228.7 + 25.7 + 31.3)
=365.6

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Fisher & Paykel Healthcare for the quarter that ended in Sep. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=422.6/( ( (1340 + max(299.9, 0)) + (1335.7 + max(365.6, 0)) )/ 2 )
=422.6/( ( 1639.9 + 1701.3 )/ 2 )
=422.6/1670.6
=25.30 %

Note: The EBIT data used here is two times the semi-annual (Sep. 2024) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Fisher & Paykel Healthcare  (NZSE:FPH) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Fisher & Paykel Healthcare ROC (Joel Greenblatt) % Related Terms

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Fisher & Paykel Healthcare Business Description

Traded in Other Exchanges
Address
15 Maurice Paykel Place, East Tamaki, Auckland, NTL, NZL, 2013
Fisher & Paykel Healthcare is one of the three largest respiratory care device companies globally. It is the market leader in hospital use humidifiers, masks and related consumables and the number three player in the at-home treatment of sleep apnea using respiratory devices. Both the hospital and homecare markets for respiratory devices are growing strongly in the developed markets in which Fisher & Paykel has a presence. The company earns 42% of its revenue in the US, 32% in Europe, 18% in Asia-Pacific and the remaining 8% in emerging markets. Fisher conducts its own R&D and has thousands of patents and pending applications. It manufactures in New Zealand and Mexico and has a multichannel distribution model.